“ What Makes More Sense-to Lease or Own Your Space? “
This is a question I am posed with frequently. The simple answer is this: when the rent and associated expenses are higher than what you would pay buying a similar space, it’s time to consider buying. Some important factors to consider:
- Interest rates have never been lower. Buyers are seeing rates under 5 percent. They will likely never be lower;
- It is a buyer’s market. There is more space available than the demand, which means there are great deals to be had;
- The cost to purchase an existing building is well below the cost to replace and/or build;
- Owning means you have an asset that you can sell or utilize as an income stream at retirement;
- If you plan to stay in the same location for 7 or more years, then buying is generally less expensive than leasing.
- There is more available rental space on the market than ever before. That means if you want to rent, there are great deals to be had in the lease market.
- Buying will cost more upfront then leasing. Some things to consider: can you afford to tie up the money needed for the down payment and closing costs? Will you outgrow the space and need to move in a few years? Can you deal with the added hassle of maintaining a property?